old article from The Australian,SAYONARA Miles Kennedy,...

old article from The Australian,

SAYONARA Miles Kennedy, arrivederci Karl Simich, bonsoir Kimberley Diamonds.

Daily Assay sides with your legion of shareholder faithful in its condolences at your passing.

We know that there was never going to be a better bid for the company than the one by London-based Gem Diamonds of 70 cents cash for every share.

We also know that the company had stumbled on to hard times and survival, in its own right, was going to be difficult.

So that is why we extend our condolences to you and your shareholders about your demise.

In all honesty however, we should have extended farewell greetings to you Miles and Karl back on November 27.

For it was the time of your last AGM when you were replaced on the Kimberley Board after Gem declared its takeover offer free from all competing conditions.

They had control of the company back then and it was only a matter of time before you were replaced.

A couple of questions, though, to you Karl and you Miles before you move off on to your next great endeavour: Why did you buy shares in Kimberley on June 16 when you had advanced knowledge of a reduced royalty rate from your dealings with disgraced lobbyist Julian Grill, but your shareholders were still in the dark?

The 160,000 shares you both bought was done three weeks before you told shareholders about the reduced royalty rate, which was cut from 7.5 per cent to 5 per cent, saving the company an estimated $8 million a year in taxes.

You were made aware of the reduced royalty rate on April 18 last year and bought your shares on June 16. Your mate Julian had even been made aware of the cabinet decision to cut the royalty rate on November 9, 2005.

Yet shareholders were not told until July 6.

Why, why, why?

Did you ever get a please explain from the ASX or ASIC?

You told The Australian on February 28 this year that you were confident the board never gained a financial windfall from the April 18 letter.

But are you also confident that it was good board practice?

And how hard did you work to see what other competing bids there might possibly be instead of the Gem offer of 70c a share?

Remember, some people had bought into Kimberley when the share price was close to $2.00. We are fully aware that the rising Aussie Dollar and the tight labour market had squeezed margins, but is 70c a share the best you could do?

We doubt you really care about any of our questions, though.

What a shame.